To trade on the forex market you need to have a forex broker. When you look at Australian forex brokers you have to consider the advanced features that they have to offer. These advanced features will vary depending on the Australian forex brokers you are considering. Some Australian forex brokers will not offer these features while others will. It is important that you consider whether you need the features and whether your broker offers them.
Australian Forex Brokers and Managed Accounts
There are certain traders who do not have the time or the inclination to trade actively on the forex market. These traders should consider the use of a forex managed account. Some brokers will offer these managed accounts where a manager completes you trades for you. This is a type of account that few retail brokers will offer and you may have to go through a different type of brokerage firm for this.
Of course, when you look at the managed accounts you should consider whether this is really the right option for you. Managed accounts need higher amounts of capital than accounts that you trade yourself. You are also putting your money in the hands of the account manager without knowing very much about them.
The Trading of Oils and Metals
There are a number of forex brokers that allow you to trade more than currency pairs. These brokers generally allow you to trade oil and different types of metals. If you are looking to do this you have to verify that your broker offers this. Not all brokers will have this as they specialise only in currency pairs and forex.
The Use of Hedging
Hedging in the forex market is a means of reducing the risks that you face when trading. The most common form of hedging is the simply hedge where you buy and sell the same currency pair. When you do this you will only profit when you close one of the positions. By using this hedging you can ensure that you are going to be holding the profitable trade. This is something that a lot of brokers do not allow and you have to check with the broker before you try this.
To stop traders hedging some brokers simply do not allow you to open a buy and sell position on the same currency pair. There are some brokers who will take this a step further and close your account if you try to hedge.
The Use of Scalping
Scalping is a trading strategy where you open very short-term trades and look at making multiple small profits. The number of trades that you make will cause the strategy to be profitable. However, scalping is a strategy that a lot of brokers do not allow. There are a number of different ways that brokers limit the scalping on their platform.
A lot of brokers will have a minimum time limit for the trades that you place. This means that you will not be able to close a trade before the minimum amount of time is complete. There are other brokers who will close your account if you use scalping.
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